Business
Dorel's Recreational/Leisure Segment Restructures Operations to Enhance Competitiveness
Plan aims to reduce supply chain complexity, increase flexibility to deliver competitive ...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\n\nPlan aims to reduce supply chain complexity, increase flexibility to\n deliver competitive advantages to customers and consumers\n\n\n\nPre-tax charge of US$14-US$16 million of which the majority to be taken\n in 2013 fourth quarter\n\n\n\nAnticipated annualized saving of US$6 million\n\n\n\nEXCHANGES\nTSX: DII.B, DII.A\n\n\nMONTREAL, Jan. 23, 2014 /CNW Telbec/ - In a continuation of its strategy\n to become the global leader in the recreation and leisure markets,\n Dorel Industries Inc. (TSX: DII.B DII.A) today announced that its\n Recreational/Leisure segment is restructuring its operations to enhance\n its competitiveness.\n\n\nAmong the global initiatives, toward the end of the current calendar\n year, the segment will close its assembly and testing facility in\n Bedford, PA and leverage the strengths and capabilities of its global\n resources, third party partners, and existing facilities to simplify\n and optimize its business model. Operations currently performed at\n Bedford, including manufacturing, assembly, testing, quality control\n and customer and technical services are expected to be redeployed by\n the end of calendar 2014.\n\n\nIn addition, Recreational/Leisure will relocate its research and\n development facility in Bethel, CT to the segment's new headquarters in\n Wilton, CT., and will convert its former retail lab in Bethel to\n accommodate GURU Academy activities. The value of the former Bethel\n headquarters will be written down to reflect the market value of the\n property.\n\n\nAs such, the segment will incur approximately US$14-US$16 million\n pre-tax in restructuring charges associated with its plan of which 70%\n are non-cash and expects to realize annualized cost savings of at least\n US$6 million once the restructuring is completed in late 2014.\n Approximately 100 employees will be affected globally once all changes\n are implemented.\n\n\n\"The objective is to accelerate operational excellence at our\n Recreational/Leisure segment by strengthening its working relationships\n with its global partners,\" said Peter Woods, Global CFO & Interim\n Recreational/Leisure President. \"In particular, we want to\n significantly reduce development and supply chain lead times, improve\n cost structures and operating margins, and enhance quality while\n lowering warranty costs.\"\n\n\n\n\"Today marks...